Latest news with #Lithia
Yahoo
3 days ago
- Automotive
- Yahoo
PINEWOOD.AI ANNOUNCES AGREEMENT TO ACQUIRE LITHIA'S MAJORITY STAKE IN NORTH AMERICAN JOINT VENTURE
to Acquire Lithia's 51% Stake; New Contract Secures Deployment Across Lithia's Dealerships in US and Canada by 2028 LONDON and MEDFORD, Ore., June 6, 2025 /PRNewswire/ -- Pinewood Technologies Group plc ( a leading cloud-based software provider for the automotive retail industry, and Lithia UK Holdings Limited, a wholly-owned subsidiary of Lithia & Driveway (NYSE: LAD), today announced an agreement in which will acquire Lithia's 51% interest in their North American joint venture for $76.5 million. The acquisition will be satisfied through the issue of 14,560,691 new ordinary shares in and values the joint venture at $150 million. Full ownership of the joint venture gives complete control of its North American platform, removing potential barriers to its broader adoption and supporting its expansion across the region's $6.5 billion automotive retail software sector. The acquisition will also simplify structure and financial reporting, enabling full revenue consolidation and greater transparency. Alongside the proposed transaction, the two companies have signed a five-year contract committing to the rollout of the Pinewood Automotive Intelligence™ platform across all Lithia's current and future dealerships in the US and Canada projected by the end of 2028. The contract also includes an agreement on pricing for Lithia's use of expects to generate approximately $40 million in annual recurring revenue once the current rollout is complete. With additional North America-specific features planned for release by the end of 2028, projected annual revenue from Lithia is expected to reach approximately $60 million. The valuation attributed to the joint venture has been independently supported by Kroll LLC and is based on the deployment of DMS platform and layered applications across Lithia's North American footprint. "We are delighted to have reached an agreement with Lithia to acquire the majority stake of the North America joint venture. The US and Canada are central to our growth strategy, and through the joint venture, we have made significant progress towards commercializing the Pinewood Automotive Intelligence™ platform for the North American market. Assuming full control of the joint venture will strengthen our ability to fully capitalize on the opportunities available in a key strategic growth market," commented Bill Berman, Chief Executive Officer of Pinewood Technologies Group plc. "Today, we are also announcing that we have agreed the terms of a five-year contract with Lithia to implement the Pinewood Automotive Intelligence™ Platform across all its current and future sites by the end of 2028. This is a significant milestone on our journey to entering the North American market and we remain on track to pilot the platform in Lithia's US stores in the second half of 2025, with the full system rollout commencing in 2026. I would like to take this opportunity to thank Lithia for their partnership in the joint venture and we look forward to working with them as a key customer long into the future." "This agreement represents the next step in our strategic partnership with and supports our vision to modernize customer experiences across our ecosystem. As largest global customer, we are excited to partner in the rollout of their platform across our North American network and accelerate our transformation into a fully integrated, data-driven retailer. is now able to emerge as the leading automotive intelligence provider in the U.S. Each of our global stores are committed to the Pinewood Automotive Intelligence™ Platform, and we will continue partnering on best-in-class product development," said Bryan DeBoer, President and CEO of Lithia & Driveway. Following completion, Lithia will remain a committed minority shareholder and key long-term customer. About Pinewood Technologies Group PLC First established in 1981, Pinewood Technologies Group PLC (Pinewood) is a leading cloud based full-service technology provider to automotive retailers and OEMs. Pinewood's system is a market-leading automotive intelligence platform, which has been developed collaboratively with dealers and OEMs to provide secure cloud-based software across sales, aftersales, accounting and CRM. Headquartered in the UK, Pinewood has a team of over 200 people serving over 35,000 global users across 21 countries and long-standing partnerships with over 50 OEM brands. Previously part of Pendragon PLC, in 2024 Pinewood became an independent entity following the sale of Pendragon's UK Motor and Leasing divisions to Lithia Motors, Inc., one of the largest automotive retailers in North America. Pinewood simultaneously signed a strategic partnership with Lithia to roll out its software across Lithia's UK locations and form a joint venture to co-develop capabilities and accelerate Pinewood's entry into the North American market. LSE: PINE OTCQX: PINWF About Lithia & DrivewayLithia & Driveway (NYSE: LAD) is the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire. View original content to download multimedia: SOURCE Lithia Motors, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-06-2025
- Business
- Yahoo
3 Reasons to Avoid LAD and 1 Stock to Buy Instead
Over the past six months, Lithia's shares (currently trading at $316.91) have posted a disappointing 18.2% loss while the S&P 500 was down 2.4%. This might have investors contemplating their next move. Is there a buying opportunity in Lithia, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons why LAD doesn't excite us and a stock we'd rather own. Same-store sales show the change in sales for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. This is a key performance indicator because it measures organic growth. Lithia's demand has been shrinking over the last two years as its same-store sales have averaged 1.9% annual declines. Gross profit margins are an important measure of a retailer's pricing power, product differentiation, and negotiating leverage. Lithia has bad unit economics for a retailer, signaling it operates in a competitive market and lacks pricing power because its inventory is sold in many places. As you can see below, it averaged a 15.9% gross margin over the last two years. That means Lithia paid its suppliers a lot of money ($84.12 for every $100 in revenue) to run its business. Debt is a tool that can boost company returns but presents risks if used irresponsibly. As long-term investors, we aim to avoid companies taking excessive advantage of this instrument because it could lead to insolvency. Lithia's $13.9 billion of debt exceeds the $430.3 million of cash on its balance sheet. Furthermore, its 7× net-debt-to-EBITDA ratio (based on its EBITDA of $1.88 billion over the last 12 months) shows the company is overleveraged. At this level of debt, incremental borrowing becomes increasingly expensive and credit agencies could downgrade the company's rating if profitability falls. Lithia could also be backed into a corner if the market turns unexpectedly – a situation we seek to avoid as investors in high-quality companies. We hope Lithia can improve its balance sheet and remain cautious until it increases its profitability or pays down its debt. Lithia isn't a terrible business, but it doesn't pass our quality test. After the recent drawdown, the stock trades at 8.9× forward P/E (or $316.91 per share). This valuation is reasonable, but the company's shakier fundamentals present too much downside risk. We're pretty confident there are superior stocks to buy right now. We'd recommend looking at the Amazon and PayPal of Latin America. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Automotive
- Yahoo
LAD Q1 Earnings Call: Lithia Addresses Tariffs, Operational Efficiency, and Future Growth Mix
Automotive retailer Lithia Motors (NYSE:LAD) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 7.2% year on year to $9.18 billion. Its non-GAAP profit of $7.65 per share was 2.8% below analysts' consensus estimates. Is now the time to buy LAD? Find out in our full research report (it's free). Revenue: $9.18 billion vs analyst estimates of $9.37 billion (7.2% year-on-year growth, 2.1% miss) Adjusted EPS: $7.65 vs analyst expectations of $7.87 (2.8% miss) Adjusted EBITDA: $461.4 million vs analyst estimates of $406.3 million (5% margin, 13.6% beat) Operating Margin: 4.4%, in line with the same quarter last year Free Cash Flow Margin: 2.8%, similar to the same quarter last year Locations: 451 at quarter end, up from 387 in the same quarter last year Same-Store Sales rose 2.5% year on year (-1.9% in the same quarter last year) Market Capitalization: $7.96 billion Lithia's first quarter results reflected the impact of ongoing market changes and operational adjustments, as management pointed to growth in new vehicle sales and aftersales as key drivers. CEO Bryan DeBoer noted that the company's omnichannel approach, which integrates digital and physical retail, has begun to yield measurable gains in engagement and unit volume, particularly in its value auto segment and financing operations. DeBoer emphasized the adaptability of Lithia's business model, especially its ability to offer a broad range of vehicle affordability options and to navigate shifts in consumer sentiment and tariffs. Looking forward, management highlighted a disciplined focus on operational execution and capital allocation. CFO Tina Miller discussed ongoing efforts to lower selling, general, and administrative (SG&A) costs and to optimize the financing portfolio. DeBoer also reiterated plans to pursue targeted acquisitions within the United States, while maintaining flexibility for share repurchases given current market valuations. The executive team acknowledged potential volatility from tariffs and industry consolidation but expressed confidence in Lithia's ability to increase market share and deliver consistent profitability across its expanding footprint. Lithia's management attributed Q1 performance to a combination of diversified product offerings, cost discipline, and the maturing of key business adjacencies. The company's ability to adapt to tariffs and maintain operational flexibility was a recurring theme throughout the call. Tariff Resilience and Inventory Management: Lithia's product mix, with about 45% of inventory unaffected by current tariffs, helped cushion the impact of supply chain disruptions. Management noted that recent inventory reductions improved cost efficiency, with new and used vehicle days' supply falling by nearly 10 days sequentially. Growth in Value Auto Segment: The value auto segment, targeting affordability-conscious buyers, saw a 39% year-over-year increase in sales. DeBoer explained this segment is less sensitive to tariffs and general market fluctuations, supporting Lithia's strategy of serving a wide range of customer needs. Financing Operations Expansion: The Driveway Finance subsidiary reported a significant sequential increase in loan originations and improved net interest margin. Management emphasized the importance of this adjacency, noting its higher contribution to earnings relative to traditional indirect lending. After-Sales and Service Strength: Aftersales gross profit rose 7.5% year over year, driven by both warranty and customer-pay work. Management highlighted the potential to further expand capacity and utilization in this high-margin business. SG&A Efficiency Initiatives: The company reduced SG&A as a percentage of gross profit, building on its 'sixty-day plan.' Management aims for ongoing monthly improvements, driven by both personnel cost optimization and vendor consolidation, while leveraging technology upgrades like the Pinewood software system. Management's outlook for the remainder of the year centers on maintaining operational flexibility in the face of tariff-related uncertainty, leveraging adjacencies, and disciplined capital allocation. Tariff Environment Adaptability: Lithia's diversified inventory and ability to adjust mix position it to respond to potential tariff changes and supply chain shifts, limiting exposure compared to peers more reliant on affected imports. Adjacency Contribution and Ecosystem Scaling: The company's ecosystem, including financing, aftersales, digital platforms, and fleet management, is expected to deliver incremental earnings growth and enhance customer retention. Cost Discipline and Capital Allocation: Ongoing SG&A reduction, targeted acquisitions in profitable regions, and balanced share repurchases are expected to underpin profitability. Management flagged personnel and vendor cost reductions, as well as operational scale, as critical levers for further margin improvement. Ryan Sigdahl (Craig Hallum Group): Asked about the impact of tariffs and inventory levels on demand trends. DeBoer explained that Lithia's diversified inventory lessens tariff exposure and that recent inventory reductions position the company well for future quarters. John Murphy (Bank of America): Inquired about the role of adjacencies like Driveway Finance and whether margin trade-offs are considered to gain market share. DeBoer stressed that transparent pricing and expanded financing help attract more customers, while maintaining gross profit per vehicle. Rajat Gupta (JPMorgan): Sought clarification on SG&A trends and the sustainability of recent improvements. Miller responded that disciplined execution and technology initiatives are driving cost reductions, with further opportunities identified for the second half of the year. Jeff Licht (Stephens): Focused on the value auto segment's sales dynamics. DeBoer detailed how value autos appeal to cash buyers and turn over faster than certified used vehicles, supporting capital efficiency and customer acquisition. Bret Jordan (Jefferies): Queried aftersales growth potential amid tariffs and regional profit differences. DeBoer highlighted that aftersales demand is relatively inelastic, and that certain regions, especially in the South, remain more profitable due to regulatory and fee structures. In the coming quarters, the StockStory team will monitor (1) Lithia's ability to further expand its value auto and aftersales segments, (2) progress toward SG&A efficiency targets and technology-driven cost savings, and (3) execution of strategic acquisitions and capital allocation priorities. We will also track how the company adapts its inventory and pricing strategies in response to ongoing tariff developments and shifting consumer demand patterns. Lithia currently trades at a forward P/E ratio of 8.6×. At this valuation, is it a buy or sell post earnings? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
The Independent
09-05-2025
- General
- The Independent
Children arrive at Florida preschool to find nine-foot alligator in parking lot
A nine-foot-long alligator, nicknamed Elvis, was caught resting in the parking lot of a Florida pre-school. The alligator was spotted lounging at Fishhawk Early Learning Preschool in Lithia, as children arrived for the day on Wednesday (7 May). Fishhawk Early Learning Preschool in Lithia, Florida on Wednesday (07 May). A certified trapper responded to the scene to help deputies from Hillsborough County Sheriff's Office wrangle the alligator and relocate it. "Thanks to a quick response and teamwork, this king of the (swamp) jungle was safely removed,' a county sheriff spokesman said.
Yahoo
28-04-2025
- Business
- Yahoo
Camping World (CWH) Reports Q1: Everything You Need To Know Ahead Of Earnings
Recreational vehicle (RV) and boat retailer Camping World (NYSE:CWH) will be reporting results tomorrow after the bell. Here's what investors should know. Camping World beat analysts' revenue expectations by 6.6% last quarter, reporting revenues of $1.20 billion, up 8.6% year on year. It was a stunning quarter for the company, with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' gross margin estimates. Is Camping World a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Camping World's revenue to grow 4.7% year on year to $1.43 billion, a reversal from the 8.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.20 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Camping World has missed Wall Street's revenue estimates five times over the last two years. Looking at Camping World's peers in the automotive and marine retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lithia delivered year-on-year revenue growth of 7.2%, missing analysts' expectations by 2.1%, and CarMax reported revenues up 6.7%, in line with consensus estimates. Lithia traded down 1.4% following the results while CarMax was also down 14.7%. Read our full analysis of Lithia's results here and CarMax's results here. Debates around the economy's health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the automotive and marine retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Camping World is down 14.1% during the same time and is heading into earnings with an average analyst price target of $24.25 (compared to the current share price of $13.88). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
